eBay's decision to restrict third-party checkout on its site last year had a devastating effect on Auction Checkout, which announced it would be going out of business after six years in the online auction industry.

Spokesperson Brad Vicroy said eBay sellers represented a large part of its customer base - it had over 1,000 customers before the eBay policy change last Spring.

Auction Checkout changed its business model after eBay forced it to stop offering its service last April, moving instead to helping large powersellers set up merchant accounts and integrate with PayPal Payflow.